Nigeria’s budget deficit reaches N8.17trn as Senate passes N819bn supplementary budget

By Onome Amuge

The Senate has passed a supplementary budget of N819 billion for the 2022 fiscal year, a move expected to further plunge the country’s budget deficit for 2022 to N8.17 trillion.

Jibrin Barau, chairman of the appropriation committee, made the announcement while presenting the committee’s  report  following its consideration and approval of the president’s request.

Barau explained that the amount was meant to complete ongoing capital projects, including roads and dams destroyed by the 2022 flooding.

“This will  make available funds to cushion the 2022 flood effects and completion of critical projects that have reached 85 percent completion,”he said.

The chairman further disclosed  that the sum would be sourced from additional domestic borrowings by the federal government.

The president, in his letter transmitting the supplementary budget to the senate, said the budget, all of which are capital expenditures would be financed through additional domestic borrowings and consequently raise the budget deficit for 2022 to N8.17 trillion and deficit to GDP ratio to 4.43 per cent.

“The year 2022 has witnessed the worst flood incidents in recent history which has caused massive destruction to farmlands at the point close to harvest season. This may compound the situation of food security and nutrition in this country.

“The flood also devastated the road infrastructure across the 36 states and the FCT,  and has affected sections of major roads and bridges nationwide that are critical to the movement of goods and services.

“The water sector was also affected by the flood and there is a need to complete some ongoing critical projects that have achieved about 85 project completion,” the letter stated.

Prior to the passage of the supplementary budget, the national assembly had passed N17.12 trillion as the 2022 budget, which was later revised to N17.31 trillion at the request of President Buhari who cited the impacts of the Russia-Ukraine war on the country’s economy.

Meanwhile, the senate has during its recent plenary,  extended the implementation of the 2022 budget till March 31,2023.

The development followed the consideration and passage of a bill for an Act to amend the 2022 Appropriation Act in order to extend the implementation year from 31st December 2022 to 31st March 2023 and for related matters in 2022.

Justifying its decision, Ibrahim Gobir, the senate leader said it became necessary to extend the implementation of the capital appropriation for 2022 in order to allow for the completion of ongoing projects.

Gobir also explained that the decision followed a delay in the release of funds for the implementation of the capital component of the 2022 budget.